30th Jun 2016 11:49
LONDON (Alliance News) - Ukrproduct Group Ltd on Thursday said its pretax loss widened in 2015, due to a fall in revenue, after noting it has extended the maturity date of its loan agreement with the European Bank for Reconstruction & Development and has been provided with a capital repayment holiday until March 1, 2017.
The Ukrainian producer and distributor of branded dairy foods and beverages posted revenue of GBP20.2 million for 2015, down from the GBP31.9 million reported in 2014, noting that it faced "significant headwinds" during the year with the Ukrainian economy under pressure "accentuated by the smoking conflict in the East of the country and the weakening of the Ukrainian economy overall".
As such, the company's pretax loss widened to GBP3.8 million from GBP3.4 million over the year.
Ukrproduct said it is looking to adapt to the "most challenging business environment" and was working to restore profitability. Sales and marketing activities are concentrated on the non-occupied regions of Ukraine and ex-Soviet countries, with a major focus on cash generation instead of revenue, the company added.
"In this volatile trading environment working capital is subject to everyday close control to generate more cash," Ukrproduct said in a statement.
Meanwhile, in a separate statement, Ukrproduct said it has amended its loan agreement with the h the European Bank for Reconstruction & Development, with the maturity date has been extended to December 1, 2024 from the previous date of December 10, 2018.
Ukrproduct has also been provided with a capital repayment holiday until March 1, 2017, at which point quarterly capital repayments, representing the majority of the loan, begin and which will then increase in amount on an annual basis until December 1, 2022, followed by a final bullet repayment on December 1, 2014, the company said.
Ukrproduct said additional deferred costs and overdue interest totalling around EUR520,000 will be due along with the final bullet payment.
Shares in Ukrproduct were untraded on Thursday, having last traded at 3.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
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